Spot gold should not fall below $1931.00 after NFP and other US economic data releases today to continue the rising bullish trend. Spot silver has to trade over $23.90 to be in a bullish zone and in September. Monday is a holiday in USA. Traders reaction one hour before or one hour after the release of US August nonfarm payrolls needs a close watch.
I will prefer to look at the ability of spot gold to break and trade over $1956 key resistance. For spot silver, I will prefer to check for the ability/inability to break past $25.00 today and next week.
Interest rates expectation by the Federal Reserve will change every few days as US July PCE inflation number did not fall significantly. Extreme side nonfarm payrolls is needed for a one way trend in precious metals, base metals and all asset classes. NFP between 160,000-225,000 will cause price moves to be dependent on the key support or key resistance holding power.
Gold and silver have risen this week partly due to expectation that a slower jobs growth in USA will cause a soft landing. Only a very high headline NFP number over 3,00,000 will cause a selloff in gold, silver, copper and US stock markets.
Just wait and watch. Trend after London AM Fix can give an idea of trend after NFP. There can be a big gap open on Monday in spot gold and spot silver in Asia. Yeah, your local Asian currency will also open with a big gap on Monday versus the US dollar.
Spot Gold (current market price $1939.60)
- Daily support: $1914.60 and $1928.00 and $1936.00
- Daily resistance: $1951.80 and $1966.00
- 50 day MA: $1931.50
- Spot gold has to trade over $1931.50 to rise to $1955.40 and $1970.00 and more.
- Crash or sell off will be there if spot gold trades below $1931.50 after NFP and till days close.
Spot Silver: (current market price $24.44)
- Daily Support: $23.63 and $24.05
- Daily Resistance: $24.80 and $25.23
- 100 day MA: $23.93
- Spot silver has to trade over $23.90-$24.05 zone to rise to $25.23 and more.
- Crash or sell off will be there if spot silver trades below $24.05 after NFP and till days close.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of Chintan Karnani. In no event shall Chintan Karnani have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Prepared by Chintan Karnani
Disclosure: I do not trade in spot gold, spot silver and comex future.
NOTES TO THE ABOVE REPORT
ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.